Zoom Slumps as Growth Disappoints The Street

Zoom has been pushing a solid recovery, but investors want to see a lot more.

BREAKING NEWS FOR ZOOM

Zoom stock fell in early trading despite a great earnings call. Is the remote-work champion ever gonna catch a break?  

WHAT HAPPENED

Zoom exceeded expectations in every way. They generated an adjusted EPS of $1.29 from $1.1 billion in revenue. Growth is moving in the right direction and the company is improving churn in a big way, but the stock is still down today.

THE WORLD IS NOT ENOUGH

Basically, Zoom’s guidance for Q4 was decent, but ever-so-slightly lower than investors wanted to see. Frankly, with all of Zoom’s promises of an AI companion and other growth-driving forces, investors have been hoping to see a breakout for a few quarters. With Zoom merely ‘recovering’ a lot of investors are simply out of patience for the former king of pandemic life. 

WHY IT MATTERS

You’re either growing or dying in this difficult market, and Zoom simply isn’t accelerating fast enough. The stock still has a lot of good opportunities to generate great revenue, but we feel bad for investors who bought at the top back in 2020. Zoom fell 4% today and is down 22% on the year.